What might 2023 have in store for the property market?
Sian Hiatt, Sales Manager, talks us through what some experts are predicting for the property market as we begin the march into 2023...
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reading time: 3 minutes.
With the battle against inflation, rising interest rates and an ongoing energy crisis it’s difficult to make any sort of prediction for the housing market - or any market, for that matter!
If you’re looking to buy or sell a property this year, you’re likely curious to know what may lay ahead in the coming months.
Most predictions centre around a belief that all of the issues named above will lead to a decline in the prices of property, but property experts are predicting that this doom and gloom may have a smaller impact on the property market throughout 2023 than we may first expect.
Expert predictions typically expect property prices to potentially fall anywhere between 2% to 8%, but with so many variables at play it’s impossible to pinpoint a drop with any certainty.
Are interest rates likely to fall?
Interest rates are at the whim of the Bank of England, but it’s fairly safe to assume that interest rates are unlikely to fall anytime soon - but hey, stranger things have happened.
Experts predict that interest rates are in fact likely to continue climbing, though the expectation is that this will now happen in very small increments before peaking towards the end of the year. The bank of England will no doubt keep an extremely close eye on the rate of inflation as they hope to see that continue to drop, as well as the effects the gradual interest rates hikes have on the wider economy.
What will this mean for house prices in 2023?
The 2008 financial crash brought a hard-hitting 16% fall in house prices, but experts are predicting any decline in 2023 to be far smaller, with Rightmove predicting a mere 2% drop in the average house price this year.
Others, such as Lloyds Bank, are predicting an average drop as high as 8%, while many others expert any fall to be somewhere in the middle.
What most experts do agree in as that 2023 is unlikely to bring a crash to property market, but rather a gentle correction.
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Will any fall in house prices be the same across the UK?
There are many different variables that come into play when it comes to house prices, so ebbs and flows, whether that be price increases or decreases, will always differ between areas.
What most experts do agree on is that higher value markets are most likely to see the highest declines - but then these markets also typically see the sharpest increases during property market booms.
What will this all mean for first-time buyers?
Should house price falls come to fruition this can be a good thing for first-time buyers as, of course, the overall price of the property would be less than it was a year ago. However, it’s important to remember that this will be offset to some degree by higher interest rates as this will push up the price of mortgages.
There will still be plenty of help for first-time buyers throughout 2023 with various home buying schemes to explore.
Here at CPS Homes our team of property experts are ready to help you realise your 2023 dreams! If you’re looking for the dream property in Cardiff or would like help achieving the best possible price from your house sale, don’t hesitate to get in touch with us today so that we can discuss your situation in detail. Simply call 02920 668585, e-mailing enquiries@cpshomes.co.uk or pop into one of our three Cardiff based branches.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
